Investment Summary. england s Lane Residence. Stunning six storey Georgian property in a prominent corner position.

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2 england s Lane Residence LONDON NW3 Investment Summary Stunning six storey Georgian property in a prominent corner position. Located in one of London s most exclusive neighbourhoods, juxtaposed between Hampstead, Belsize Park and Primrose Hill, a short distance from Central London. Situated at the corner of England s Lane, Haverstock Hill and Antrim Road, in direct proximity to Belsize Park s shopping and leisure amenities and Underground Station. Surrounded by some of Belsize Park s most sought after residential roads. Former nurses accommodation currently used to provide 162 fully self contained studio units. Total accommodation of 5,422.4 sq m (58,366 sq ft) GIA. Studio units range from 15.5 sq m (167 sq ft) to 29.5 sq m (318 sq ft). Rolling refurbishment works are being undertaken by the tenant at a substantial cost. Let to the Mayor and Burgesses of the London Borough of Camden without security of tenure on a 10 year lease expiring March Current rent passing of 1,891,380 per annum subject to annual unfettered RPI inked increases, with the final review in March Freehold interest. Seeking offers in excess of 26 million reflecting the following attractive profile: Net Initial Yield: 6.88% Capital Value Per Unit: 160,500 Capital Value Per Sq Ft: 445 2

3 england s Lane Residence LONDON NW3 Capital City The United Kingdom s Capital and one of the world s most iconic centres, London is virtually unrivalled in its international influence. Covering 610 sq miles, London is a global leader in all aspects. Business Education Living Ranked as the leading global financial centre for 2011, London is an international mainstay of the financial services industry and the country s economy. The Capital accounted for over 25% of England s GVA, more than 20% of which was from financial services. Tourism London comfortably ranks first as the 2011 top city destination for international visitors at over 20 million, two million more than Paris, its nearest competitor. International visitor spending in the Capital over 2011 is also unrivalled at 15.4 billion, over 3 billion more than New York. London will also host the Olympics this summer, further boosting its appeal. With 43 universities, London boasts the biggest concentration of higher education within Europe, and some of the world s most respected education establishments. Three of London s universities rank within the global top 10 for 2012, being London School of Economics, University College London and Imperial College. City University, Kings College London, Royal Holloway and Queen Mary also rank highly. Culture & Leisure The Capital is home to four world heritage sites and numerous international landmarks, including Buckingham Palace, St Paul s Cathedral and Trafalgar Square. Host to some of the most exclusive shopping districts, Bond Street, Oxford Street, and Regent Street, and best known cultural sites, such as The Tate Modern, National Portrait Gallery, National History Museum and the British Museum. London continues to be one of the most desirable international city locations to live, with numerous renowned addresses and exclusive developments. The Capital has been rated as the leading global residential city to invest in with the third highest average prime values worldwide at 2,900 per sq ft. London s exclusive status and appeal to investors and occupiers alike has continued to drive residential prices, achieving growth of more than 12% over St Paul s Cathedral Natural History Museum 3

4 Household Cavalry Swiss RE, St Helen s, City of London Houses of Parliament and Big Ben Buckingham Palace Bank of England 4

5 england s Lane Residence LONDON NW3 London NW3 NW3 is one of London s most exclusive districts, occupying an enviable position less than 6.5 km (4 miles) north west of Central London. Principally comprised of Hampstead, Belsize Park and Primrose Hill, the area forms some of London s most sought after residential neighbourhoods, benefitting from extensive amenities and direct proximity to the green spaces of Hampstead Heath, Primrose Hill and Regents Park. Hampstead and Belsize Park are conveniently situated around Haverstock Hill (A502), bordered by Hampstead Heath to the north, Parliament Hill and Highgate to the east, and West Hampstead and South Hampstead to the west. Primrose Hill is immediately south, in turn bordered to the west by the Central London suburb of Swiss Cottage, and Regents Park to the south. Hampstead Hampstead s excellent mix of high end and boutique retail and restaurant amenities has made it a destination shopping location for both local residents and tourists. Retailers include Bang & Olufsen, Comptoir des Cotonniers, Kurt Geiger, Nicole Farhi and Zadig & Voltaire with notable restaurants including La Cage Imaginaire, Le Celler du Midi and Villa Bianca. Belsize Park Belsize Park hosts a similarly impressive array of amenities, focussed along Haverstock Hill, England s Lane and the attractive Belsize Village. Haverstock Hill offers a large variety of informal eateries including Prezzo, Pizza Express and Giraffe, in addition to Everyman Cinema and various daily amenities. A range of high end delicatessens and bistros are situated along England s Lane including Ginger & White, Chamomile and Paradiso as well as various select retailers. Belsize Village offers multiple exclusive restaurants, among which are XO, Retsina and La Paletta dell Artigiano. 5

6 Primrose Hill Focussed around Primrose Hill and its excellent views of the Capital, the area is one of London s premier residential districts, reflected in the quality of its local amenities. Regents Park Road accommodates various luxury independent traders including Anna, Keturah Brown, Pamela Shiffer, Spice Shoes and Studio 8 while L Absinthe, Lemonia, Odette s and Sardo Canale are just some of Primrose Hill s well respected restaurants. 6

7 england s Lane Residence LONDON NW3 Situation Tr ansport Communications The investment occupies a highly prominent corner site, in an excellent position in one of the area s premier residential addresses, a short walk from Hampstead and Primrose Hill. Belsize Village is nearby, while Camden Town s cosmopolitan centre, Roundhouse Theatre and Underground Station are less than 1 km (0.6 miles) to the south. Fronting Haverstock Hill, with entrances at both England s Lane and Antrim Road, the Property lies opposite England s Lane s retail conveniences. Steeles Village s amenities on Haverstock Hill are also adjacent, which include The Legal Cafe, The Hill Bar and Brasserie and Ikura as well as various independent retailers and local conveniences. 4 A406 GLENLOCH RD A40 A4088 BELSIZE PARK GARDENS ETON AVE FELLOWS RD Brent Reservoir N CIRCULAR RD Belsize Park A5 EDGWARE RD A5 A5 EDGWARE RD Gladstone Park M1 A407 1 WESTWAY A41 A406 A407 A4003 A502 HENDON WAY FINCHLEY RD CRICKLEWOOD LN HIGH S T A404 HARROW RD A502 HAVERSTOCK HILL PRIMROSE GDNS BELSIZE GROVE ANTRIM RD Wormwood Scrubs Park ENGLAND S LN STEELE S RD PARKHILL RD ETON RD ADELAIDE ROAD B509 MAITLAND PARK VILLAS Chalk Farm MALDEN ROAD QUEEN S CRESENT A598 West Hamstead Thameslink N END WAY A41 A40 HEATH ST FINCHL Finchley Road Paddington EY RD Hampstead Heath Hampstead A41 A502 Swiss Cottage A5205 A502 Primrose Hill PRINCE ALBERT RD PARK RD Parliament Hill Hampstead Heath Belsize Park Chalk Farm Regents Park Baker Street Gospel Oak A501 A1 Oxford Circus Archway A400 A503 A4200 Euston CAMDEN RD Kings Cross St Pancras A40 OXFORD ST HOLLOWAY RD A1 EUS TON RD N A40 Tottenham Court Road A503 7 Map not to scale. For indicative purposes only.

8 Road England s Lane Residence benefits from excellent transport communications, with Finchley Road (A41) and Haverstock Hill (A502) providing major links to Inner and Greater London. Bordering Hampstead and Belsize Park, Finchley Road offers direct access to the West End less than 3.2 km (2 miles) to the south, as well as the Euston Road (A501) from where Westminster and Victoria are easily accessible. Prince Albert Road (A5205) links Primrose Hill with the A41 and Camden High Street (A400), serving the West End and the rest of Central London. The Haverstock Hill north to south arterial route also connects to Central London via the Euston Road, approximately 3.5 km (2.2 miles) south. Bordering Midtown and less than 1 km (0.5 miles) west of Kings Cross, the A501 links to Marylebone and the West End within 1 km (0.5 miles) to the west, and the City approximately 3.2 km (2 miles) to the south. Haverstock Hill additionally joins the North Circular (A406), London s innermost ring road and major arterial route, approximately 5.6 km (3.5 miles) to the north. Public Transport The Property is extremely well served by public transport, with Belsize Park Underground Station (Northern Line) in direct proximity. Chalk Farm (Northern Line), Swiss Cottage (Jubilee Line) and Finchley Road (Jubilee and Metropolitan Lines) Underground Stations are all accessible by bus from outside the Property in under 10 minutes. From these stations, travel times to the West End and Kings Cross are inside of 10 minutes, and the City within 15 minutes. Multiple bus routes serve the immediate vicinity, with Brent Cross Shopping Centre within 35 minutes travel time, while West Hampstead (Jubilee Line and First Capital Connect), and Archway (Northern Line) Underground Stations, are within 20 minutes. The West End, Midtown, Chancery Lane, Farringdon and Tottenham Court Road are also easily accessible by bus. Gospel Oak and Hampstead Heath Mainline Stations (London Overground) are less than 10 minutes travel by bus, and provide access across London to Hoxton and Shoreditch to the east as far as Stratford, and Kensington and Richmond to the south west. Neasden Brondesbury Park Kilburn High Road Paddington Dollis Hill Brondesbury Earl s Court Willesden Green Kilburn South Hampstead Edgware Road Bayswater Notting Hill Gate Edgware Road Queensway High Street Kensington Gloucester Road Hendon Central West Hampstead Marylebone Lancaster Gate Hyde Park Corner Knightsbridge South Kensington Brent Cross Finchley Road Golders Green Swiss Cottage Marble Arch St. John s Wood Bond Street Sloane Square Victoria Hampstead Finchley Road & Frognal Baker Street Oxford Cirus Belsize Park England s Lane Great Portland Street Regent s Park Green Park St. Jame s Park Hampstead Heath Chalk Farm Warren Street Piccadilly Circus Westminster Camden Town Mornington Crescent Euston Goodge Street Tottenham Court Road Charing Cross Gospel Oak Kentish Town West Euston Square Russell Square Camden Road King s Cross St. Pancras Holburn Covent Garden Leicester Square Temple Embankment East Finchley Highgate Archway Tufnell Park Kentish Town Farringdon Chancery Lane Mansion House Blackfriars Crouch Hill Holloway Road Caledonian Road Angel Barbican Cannon Street St. Paul s Bank Upper Holloway Arsenal Caledonian Road & Barnsbury Old Street Moorgate Monument London Bridge Turnpike Lane Manor House Finsbury Park Highbury & Islington Liverpool Street Aldgate Tower Hill Zone3 Zone2 Zone1 5 minute journey 10 minute journey 15 minute journey Map not to scale. For indicative purposes only. 8

9 england s Lane Residence LONDON NW3 Description England s Lane Residence is an imposing Georgian property constructed over six storeys, formerly comprising nurses accommodation for the nearby Royal Free Hospital. Arranged in two interlinked horseshoe and L-shaped wings, the building provides a series of fully self contained studio units over ground to fourth floors. Occupied by Camden Council since 2004, the studios have been fitted out with kitchens, ensuite WCs and shower facilities. In addition, each unit benefits from an independent electric meter. The building provides a total of 162 studios, with 30 units at ground floor, and 33 per floor over the upper levels, a number of which benefit from impressive views of Central London. The tenant is in the process of undertaking rolling refurbishment works to each unit as well as the common parts at a substantial cost. A number of suites have been redecorated, with new kitchen and toilet facilities installed. The lower ground floor provides a communal room and laundry facilities, in addition to caretaker s flat and general plant. A small garden area fronts Haverstock Hill, with on-site parking facilities for 16 vehicles around the site, with access from Antrim Road. 9

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11 england s Lane Residence LONDON NW3 Accommodation The Property has been measured by Plowman Craven in accordance with the Code of Measuring Practice (6th Edition). The areas are as follows: Floor GIA Sq M GIA Sq Ft Lower Ground ,846 Ground 1, ,354 First ,700 Second 1, ,824 Third 1, ,819 Fourth ,823 Total 5, ,366 Five categories of studio are provided based upon size, detailed below: Floor Size Sq Ft Total Units Category Category Category Category Category Total 162 Further information is available upon request. England s Lane England s Lane Ground Floor First Floor 11

12 England s Lane England s Lane Second Floor Third Floor Examples of studio units: England s Lane Category 1 Category 2 Category 3 Category 4 Category 5 Fourth Floor Sq Ft Sq Ft Sq Ft Sq Ft Sq Ft Floor plans not to scale. For indicative purposes only. 12

13 england s Lane Residence LONDON NW3 Tenure Freehold. Tenancy Let to The Mayor and Burgesses of the London Borough of Camden on a 10 year lease expiring 8 March 2014, contracted outside the 1954 Act security of tenure provisions. The current rent passing of 1,891,380 per annum is subject to annual RPI linked increases without collar or cap. The final review is in March We highlight that the tenant has recently made verbal enquiries in respect of a one year extension to the lease. 13

14 Existing Planning Consent The investment benefits from an unrestricted hostel (Sui Generis) planning consent by way of a Certificate of Lawfulness issued on 24 February The current permission allows for the self contained studio units as existing to be independently occupied for uses such as residential and student accommodation, provided certain criteria are met in relation to overall building management and the provision of shared facilities. Further information is available upon request. Alternative Planning Consents Given the investment s underlying characteristics and its configuration, the building lends itself to alternative planning consents including student accommodation (Sui Generis) and private residential (C3). 14

15 england s Lane Residence LONDON NW3 Market Commentary London is resident to approximately 300,000 full time students, with 20 major universities, eight of which are Russell or 1994 Group. Student Accommodation The Capital s quality of education and wider appeal is reflected in its status as one of the top two Best Global Student Cities again this year, and its 64% student population increase over the 15 years to 2010/11. With minimal competition, this is forecast to expand by over 45% over the next decade. London s particular international appeal has seen its overseas student population increase by 81% over the past 10 years, and is forecast to increase by more than 110% by 2021/22. Despite the Capital s significant draw, it remains the most undersupplied student accommodation market within the United Kingdom, with 81% of London s student population unable to access purpose built premises. The pent up demand for high quality, purpose built accommodation is reflected in the rental growth for studio units and ensuite rooms over 2011, at respectively more than 8% and 9%. Overseas students are a major contributing factor to this, seeking purpose built premises such as England s Lane Residence, for the duration of their studies. Over the year to September 2011 the sector s total returns in London almost doubled from 8.4% in the previous year to 15.1%. Rental growth has been key to this performance. The structural undersupply of purpose built bed spaces is set to continue for the foreseeable future, with total returns forecast to achieve over 12% for the 2012/13 academic year. England s Lane Residence is well placed to capitalise on London s undersupply, and the sector s significant rental growth. The asset is already configured as studio units, located in the desirable NW3 area, with excellent amenities and transport links, and is in close to proximity to Central London and multiple university campuses. Universities No. University Faculty University College London 1 Leisure Facilities, Student Union 2 Engineering, Humanities 3 Medicine 4 Law Kings College London 5 Humanities, Law, Maths 6 Education, Medicine 7 Dentistry, Medicine 8 Dentistry, Medicine The London Metropolitan University 9 Administration, Leisure, Library 10 Science 11 Accounting, Business, Economics, Law 12 Accounting, Economics, Humanities 13 Economics, International Business 14 Art, Media & Design 15 Finance, Humanities, Psychology 16 Art, Media & Design 17 Law 18 Administration 19 Computing and Maths 20 Architecture Middlesex University 21 Education, Research University of Westminster 22 Administration 23 Computing, Life Sciences 24 Architecture, Business 25 Humanities, Social Sciences 26 Law, Finance 27 Humanities, Social Sciences Central St Martins College of Art and Design 28 Art London School of Economics 29 Economics Imperial College London 30 Computing, Engineering, Maths, Physics 31 St Mary Campus - Medicine 32 Hammersmith Campus - Medicine City University 33 Campus Cass Business School 34 Business City Law School 35 Law Queen Mary University 36 Engineering, Humanities, Social Sciences 37 Medicine 38 Law London Southbank University 39 Campus American Intercontinental University 40 Fashion Regents American College London 41 History, Media, Politics 15

16 4 miles 21 Archway 3 miles Parliament Hill 2 miles A5 Hampstead A41 West Hampstead A502 Belsize Park Finchley Road South Hampstead 3 ENGLAND S LN Swiss Cottage Belsize Park Primrose Hill Chalk Farm A502 Kentish Town Camden Town 28 Holloway Road Islington 20 Highbury Shoreditch A10 32 White City 4 miles N North Kensington A40 3 miles Latimer Road 2 miles Kensington Paddington Maida Vale A5 Knightsbridge 30 A41 Marylebone 31 Hyde Park A501 A4 Regents Park South Kensington Baker Street 40 Euston Oxford Circus London Victoria Kings Cross Tottenham Court Road Holborn A Charing Cross Waterloo Kings Cross St Pancras Barbican 37 Blackfriars Waterloo A23 34 River Thames London Bridge A2 Old Street 12 City of London 7 18 Liverpool Street Aldgate 16 A11 A13 Map not to scale. For indicative purposes only. 16

17 england s Lane Residence LONDON NW3 Market Commentary London s attraction as a safe haven and its quality of living have secured the Capital s status as the leading global prime residential investment location. Residential The strength of London s market has made it the fastest recovering centre for prime residential values since 2009, which increased by more than 11% for the year to March With no signs of change to the high levels of demand, particularly from overseas, and a lack of available stock, prime Central London values are forecast to continue performing strongly, increasing 5% this year, and 17% by NW3 comprises one of London s most sought after residential areas, with excellent high end amenities, large green open spaces, good transport links and direct proximity to Central London. Demand for premises has reflected this, with strong appetite from both domestic and overseas investors across all lot sizes. While capital growth within NW3 has been strong with top values reaching in the region of 2,400 per sq ft, the area s performance has been limited by a lack of availability, currently approximately 22% below average. NW3 has had a significant undersupply of apartment developments of late reflected in the difficulty of securing appropriate sites. De Laszlo House on Fitzjohn s Avenue, the most recent apartment development of note, has achieved in excess of 1,600 per sq ft. We believe England s Lane Residence occupies a superior position and is capable of achieving in excess of this, to set new benchmark levels. 17

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19 england s Lane Residence LONDON NW3 Investment Consider ations Impressive six storey Georgian property in NW3, one of London s most exclusive districts, juxtaposed between Hampstead, Belsize Park and Primrose Hill. The building has benefitted from tenant refurbishment at a substantial cost. Configured as 162 fully self contained studio units with existing capability for independently metered services. Opportunity to secure vacant possession by no later than March Subject to the necessary consents, potential to extend the Property at fourth floor level in addition to infill of the horseshoe shaped wing. Freehold ownership. Beneficial unrestricted hostel (Sui Generis) planning consent. Ability for the premises to be independently occupied under the existing planning consent for uses such as residential or student accommodation, subject to certain requirements. Subject to the necessary consents, opportunity to change the planning permission to student accommodation (Sui Generis) or private residential (C3). Low capital value equating to 160,500 per unit and 445 per sq ft, a significant discount to surrounding private residential values. 19

20 VAT The Property has not been elected for VAT. It is anticipated that the sale will be treated as a Transfer Of a Going Concern (TOGC). Proposal We are instructed to seek unconditional offers in excess of 26,000,000 (Twenty-Six Million Pounds) subject to contract and exclusive of VAT for the freehold interest, reflecting the following attractive profile assuming standard Purchaser s costs of 5.80%: Net Initial Yield: 6.88% Capital Value Per Unit: 160,500 Capital Value Per Sq Ft:

21 england s Lane Residence LONDON NW3 Further Information Please see the website For further information or to arrange a viewing please contact: David Baroukh david@dbaprop.co.uk Simeon Cohen simeon@dbaprop.co.uk Grant Beasley grant@dbaprop.co.uk David Baroukh Associates, 6A Wimpole Street, London W1G 8AL Tel: Fax: Misrepresentation Clause David Baroukh Associates LLP for themselves, their Associated Companies, their employees and for the vendors or lessors of the properties whose agents they are give notice that:- 1. All particulars or properties provided are given as a general outline only for the guidance of intending purchaser, lessee or tenant, and do not constitute, nor constitute part of, an offer or contract. 2. Whilst all particulars of properties given including but not limited to descriptions, dimensions, references to condition and necessary permissions for use and occupation and maps are believed to be correct and are given in good faith, they are however given without responsibility on the part of David Baroukh Associates their Associated Companies, their employees and or the vendors or lessors as the case may be. 3. None of the statements contained in any particulars is to be relied upon as a statement or representation of fact. 4. Any intending purchaser or lessee or tenant should not rely on any particulars provided by us and must satisfy themselves by inspection or otherwise as to the correctness of each statement made in such particulars. 5. The vendor or lessor (as the case may be) do not make or give and neither David Baroukh Associates LLP, their Associated Companies or any person in their employment have any authority to make or give any representation or warranty whatever in relation to any properties. June

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